Below is a summary of important guidance from the Internal Revenue Service (IRS) and related taxes for the week of December 12, 2022 – December 16, 2022.
December 12, 2022: The IRS has released Internal Revenue Bulletin 2022-50, which highlights the following:
Internal Revenue Service 2022-41: This guidance determines whether the information shown on the income tax return will be adequate information for the purpose of reducing the tax deficiency of the income under section 6662(d) and to avoid the preparer penalty section 6694(a). . This tax procedure updates procedure 2021-52 and applies to 2022 income tax returns for tax years beginning in 2022 and tax returns in 2023 the 2022 tax return for the short tax year beginning in 2023.
December 12, 2022: The IRS has reminded people over the age of 72 to start withdrawing from individual retirement arrangements (IRAs) and retirement plans to avoid penalties. The required minimum distribution (RMD) is the minimum amount that many retirement plan and IRA account holders must withdraw each year after they turn 72. 72 or, with a workplace pension plan, when they retire. RMDs are taxable income and may be subject to penalties if not taken on time.
December 12, 2022: The IRS and the U.S. Department of the Treasury (Treasury) have announced new procedures that outline important steps for clean car manufacturers and dealers. Revenue Procedure 2022-42 provides guidance on the new rules included in the Tax Cuts Act of 2022 on how to enter into written agreements with the IRS to provide reports on -regular text with specific information related to clean cars. The revenue process also provides the procedure for the person selling the car to report the information to the IRS so that the car can get the credit.
December 13, 2022: The IRS has encouraged families and individuals paying disability-related expenses to consider using an Achieving a Better Life Experience (ABLE) savings account. An ABLE account does not affect a person’s eligibility for government assistance programs and can also provide tax benefits.
December 13, 2022: The IRS issued Revenue Procedure 2022-43, which describes the final qualified intermediary withholding agreement (QI agreement) entered into under section 1.1441-1(e)(5) of the regulations, effective 1 January 2023. The QI Agreement allows certain individuals to enter into an agreement with the IRS to simplify their responsibilities as withholding agents and as payers for payments to account holders and allows certain persons to act as qualified derivatives dealers and to assume primary responsibility for withholding and reporting dividend-equivalent payments. he does.
December 14, 2022: The IRS Independent Board of Appeals has selected Elizabeth (Liz) Askey as its new Deputy Chief. Askey has more than 30 years of experience in tax and policy debate. He joined the IRS Office of Chief Counsel in 2019 as Deputy Division Counsel for the Large and International Division.
December 14, 2022: The IRS has issued Tax Advisory 2022-190, requesting volunteers for the 2023 filing season. The IRS Volunteer Income Tax Assistance and Tax Counseling program for seniors offers Free tax preparation for low to moderate income individuals who need help preparing their taxes.
December 14, 2022: The IRS reminded employers and self-employed individuals who chose to defer payment of a portion of their 2020 Social Security tax liability that they file a second deferred payment on December 31, 2022.
December 15, 2022: The IRS issued Revenue Procedure 2023-8, which provides the procedures under sections 446 and 1.446-1(e) of the regulations to obtain automatic approval from the IRS Commissioner to change the accounting procedure. credit for specific research or experimental expenses to match the distribution. 174, as amended by the Tax Cuts and Jobs Act (TCJA).
December 15, 2022: The IRS has submitted its financial statements for 2022. From October 1, 2021 to September 30, 2022, the IRS earned more than $4.9 trillion and distributed $642 billion to federal refund.
December 15, 2022: The IRS has issued final regulations related to health insurance reporting under sections 5000A, 6055 and 6056. The individual liability coverage amount is zero. The final rule also provides an automatic extension of time for “applicable large employers” (generally employers with 50 or more employees) to provide disclosures related to the health insurance they offer. of its full-time employees.
December 15, 2022: The IRS issued Revenue Regulation 2023-01, which provides the applicable federal rate for federal income tax purposes for January 2023. The rate will decrease to 4.50% the federal interest rate in the short term, the medium rate and the long term will fall to 3.85%. -The term rate will drop to 3.84%
December 15, 2022: The IRS has released Tax Tip 2022-191, which provides a checklist of things taxpayers should follow when planning for 2023. The tips include researching retirement plans, giving to charity and participation in salary deferrals.
December 15, 2022: The IRS has requested comments on Treasury Ruling 9107, related to deductions and expense deductions for taxpayers who have business, business or property interests. Comments must be received by February 13, 2023.
December 16, 2022: The IRS issued Notice 2023-5, which provides guidance on the corporate bond monthly yield curve, the corresponding spot distribution ratio and the 24-month distribution average for December 2022. securities such as valid for plan years starting before 2008 and 30-year Treasury average.
December 16, 2022: The IRS has announced that Courtney Kay-Decker is the new Deputy Director of Taxpayer Experience. The Office of Taxpayer Experience is leading efforts to improve customer service at the IRS by focusing on the six key strategies identified in President Joe Biden’s executive order. Biden on transforming the federal customer experience and service delivery to rebuild trust in government and report on the first taxpayer legislation to Congress. Prior to this role, Kay-Decker was an attorney at Lane & Waterman LLP in Davenport, Iowa, where she focused on tax and corporate governance matters.
December 16, 2022: The IRS publishes a list of written decisions each week (for examplePrinciples of Independent Letters, Letters of Technical Advice and Advice from Chief Counsel).
The IRS Electronic Tax Administration Advisory Committee will host a public meeting on January 11, 2023 at 12:30 pm (EST). The committee’s purpose is to provide feedback on how the IRS is fulfilling its responsibilities electronically.
Special thanks to Sarah Raben in our Chicago office this week.